Mercantile Bancorp requests 60-day extension of plan exclusive periods

By Jim Witters

Wilmington, Del., Oct. 23 - Mercantile Bancorp, Inc. is seeking a 60-day extension of its exclusive periods for filing a Chapter 11 plan and for seeking plan acceptances, according to an Oct. 23 filing with the U.S. Bankruptcy Court for the District of Delaware.

The company says it needs the additional time to finalize negotiations for the waiver of an estimated $23 million cross-guarantee claim related to the Federal Deposit Insurance Corp.'s seizing of Mercantile's Royal Palm Bank and Heartland Bank.

The waiver is a contingency to closing on the sale of Mercantile's interests in Mercantile Bank to United Community Bancorp Inc. for $23.03 million. The sale was approved by the court on Sept. 25.

The debtor plans to use the sale proceeds to fund a Chapter 11 plan of liquidation.

If Mercantile's request is approved, the exclusive filing period would be extended through Dec. 24 from Oct. 25. The exclusive period for soliciting votes would be extended through Feb. 24 from Dec. 24.

A hearing on the request is scheduled for 11 a.m. ET on Nov. 14.

Mercantile Bancorp, a Quincy, Ill., bank holding company, filed for bankruptcy on June 27. The Chapter 11 case number is 13-11634.

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